Maccabi Tel Aviv Basketball Chairman Exercises Right of First Refusal

Shimon Mitzrachi, the veteran chairman of Maccabi Tel Aviv basketball club, announced Saturday evening that he is exercising his right of first refusal to acquire half of the Rakanti family's shares, which were slated to be sold to Jason Levin. This move mirrors a similar action taken by Richard Deitz the previous day, though Mitzrachi's right takes precedence according to the original shareholders' agreement.

Mitzrachi detailed his decision in a letter to fans, stating, "The Rakanti family and I are working together, with the sole goal before our eyes being the good of the club. I fully supported the Rakanti family's decision to exercise their right of refusal. It is important for you to know: there is no financial gain for the Rakanti family in this move."

The current shareholder agreement places Mitzrachi's action as the final step in a series of recent transactions. The Rakanti family had previously purchased shares from the Federman family. Following this, Deitz exercised his option, and Mitzrachi subsequently exercised his.

Following Mitzrachi's exercise of his right, he now holds over 40% of the club's shares, comprising approximately 29% from the Rakanti-Levin deal and his original 14.5%. Jason Levin holds an additional 9%, the Rakanti family retains 29%, and Ben Ashkenazi holds 1% after selling 9% of his shares to Levin, reducing his stake and disqualifying him from board membership.

Other shareholders now have the option to pursue legal avenues to review the contracts and related matters. It is possible that appeals may be filed.